Sammy Company is considering eliminating its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avaldable, and $118,000 of its fixed costs are avoidable. The impact on Sammy's operating income from eliminating the commercial division would be Sales Variable costs Garden) $679,000 390,900 FAXE $ 974,000 Commercial $746,000 432,000 667,000 Contribution margin 288,100 542,000 78,200 Fixed costs 265,200 353,500 320,400 Net income (loss) 22,900 188,500 (242,200)